How to effectively regulate AI innovation without stifling it? The EU Commission’s draft AI Act provides in Article 53 for 'regulatory sandboxes' as a possible answer. 'Regulatory sandboxes' ('Reallabore' in German) allow for a rules-based environment to facilitate the development, testing and validation of innovative AI systems for a limited period of time before they are placed on the market or put into service. Both regulators and innovators can gain insights into how the technology functions, where possible compliance risks lie and also recognize and predict regulatory loopholes early in the process. What does the framework of a regulatory sandbox look like? How does the envisaged co-creation of regulation and innovation work in practice? How do regulatory sandboxes fit into the European and German AI strategies? And what are the current developments in the field, especially in healthcare and climate tech?

Dr. Konstantin Kolloge is the Head of the Coordinating Office for Regulatory Sandboxes at the German Federal Ministry of Economic Affairs and Climate Action.